Huawei continued to see momentum for its devices in Q3, as the company posted a revenue rise of almost 16 per cent, although net profit took a hit.

In a statement to the Shanghai Clearing House, Huawei recorded sales of CNY168.4 billion ($23.7 billion), up 15.6 per cent year-on-year, on the back of growth in handset shipments.

Research company IDC stated last week Huawei device shipments in China grew 42 per cent year-on-year in Q3, placing the company in third spot and marking four quarters of year-on-year growth.

While shipments were a bright spot, Huawei’s net profit fell 70.5 per cent to CNY7.8 billion.

Bloomberg reported the drop could be due to an outlay around manufacturing chips, as Huawei pushes to develop its own technologies due to US sanctions.

The company did not break out figures in the statement for individual business units.

In the opening nine months, Huawei recorded a 13.7 per cent drop in net profit to CNY62.9 billion, while revenue rose from CNY452.3 billion to CNY585.9 billion.